Review of the world economy, January 2015

12 Feb 2016

In January 2015, the world economy showed a moderate growth. Economic growth of the USA was restrained. At the same time, economic activity recovered in the majority of leading countries of the Eurozone. Economic growth of China continued to slow down gradually, and the economic situation in Russia continued to worsen. On world goods markets, prices for primary commodities continued to drop due to an excessive supply, strengthening of the exchange rate of the US dollar, and a reduction in the external demand.

In January 2015 versus the previous month, the global composite index JPMorgan PMI2  grew, totaling 53.0 (in December 2014, 52.4). Growth rates of industrial production and service industry speeded up pri- marily owing to economic activity revival in developed countries.

Within the reporting month, growth rates of the economy of the USA were restrained. The slow expansion of new business of manufacturing companies exerted pressure on the general productivity of the US man- ufacturing sector. The manufacturing PMI remained at the level of the previous month (53.9). The year on year growth rates of industrial production went up to 4.8% (in December 2014, 4.4%) chiefly owing to an increase in production volumes of durable goods, excluding cars.

The domestic market was characterized by a reduction in consumer expenditures of the population, which wanted to save a portion of its income received owing to a fall in prices for fuel. In January 2015, the year on year growth rates of the retail trade turnover increased to 3.6% versus 3.2% in December 2014. At the same time, there was observed a reduction in car sales.


The situation on the labor market continued to improve. In January 2015, the number of new jobs continued to exceed 200 thousand, making up 239 thousand (in December 2014, 329 thousand). The unem- ployment rate remained almost at the level of the previous month (5.7%).

Inflationary processes started to slow down at a fast pace. In January 2015, for the first time since October 2009, the annual consumer inflation diminished to "minus" 0.1% owing to a decline in prices for energy carriers.


Source: Bulletin of the National Bank of Ukraine               

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